What is the trustee looking for in a chapter 7 case?

Overall, the trustee is looking for honesty in a chapter 7 case. The phrase "tell nothing but the truth and the whole truth" applies in a bankruptcy just as it would in a regular court proceeding. In fact, an affidavit is signed by the petitioner to that effect.

The Trustee and Honesty in the Petition

Chapter 7 is about liquidating assets in order to pay off debts. In the petition, the debtor will have listed any property that might qualify for sale by the trustee. When it so happens that there is no property, the trustee will sign off on a report of no distribution.

All of this is a normal bankruptcy procedure. The trustee's role is to ensure that the petitioner is telling the truth per the petition. They will investigate into their background, looking over financial documents for anything that may not have been disclosed. By being honest and up front with information, there will be no reason for the trustee to look any deeper or question the information. Dishonesty is a sure way towards getting a filing dismissed, possibly with prejudice.

Hiring a Lawyer for Bankruptcy

Bankruptcy is a serious business. Hiring a lawyer ensures that there will be no problems with the trustee as the case progresses. An experienced bankruptcy attorney is familiar with what the petition requires and what the trustee will be looking for, heading off problems before they start.